Alrosa announces Q1 2019 IFRS results
Alrosa
sales exceeded
production
by 35% in Q1
Alrosa,
the world’s leader in diamond mining, announces its IFRS financial results for
Q1 2019 & says, revenue increased by 15% q-o-q to RUB 70 bn, mainly driven
by strong sales volumes (up 18% q-o-q). The sales exceeded production by 35%
due to increased sales of smaller-size diamond from inventories as polishers’ restocked
early in 2019. Y-o-y revenue declined by 27% owing to a higher share of
small-size rough gem diamonds in sales and lower sales in carats (down 21%
y-o-y).
Ebitda
grew by 16% q-o-q to RUB 31 bn, supported by top line growth. On a y-o-y basis,
Ebitda decreased by 34% as revenue declined. • Ebitda margin remained flat
q-o-q at 44% (down 5 pp y-o-y).
Free
cash flow went up by 81% q-o-q to RUB 26 bn due to a 40% higher operating cash
flow q-o-q and a reduction in capex (down 45% q-o-q). On a y-o-y basis, free
cash flow declined by 37%, mainly due to a 35% y-o-y decrease in operating cash
flow, despite capex going down by 20% y-o-y due to launch of Verkhne-Munskoye
deposit.
Net
profit grew 3x q-o-q to RUB 24 bn because of, among other things, the low base
of the Q4 2018 net profit (due to one-off factors, including impairment) and
the growth in Ebitda. A 27% y-o-y decline was attributable to lower revenue.
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